//Genius House Hacking Concepts

Genius House Hacking Concepts

Genius House Hacking Concepts

Basically, a multifamily unit can be a great property to purchase for a house hack. But it is not the only type. And it is practically not the most traditional because there are fewer quadruplexes than other property types. So, we have listed other property classes that you can avail of your house hacking.

  • Duplex
  • Triplex
  • Spare bedrooms of a single-family unit for bed spacing or Airbnb guests
  • Accessory house units of single-family properties like garage, basement, on-site cottage, or casitas
  • RV or mobile houses on a large lot of single-family units
  • Driveways which will serve as rental parking spaces

It is given that not all strategies will work in every property. Say, for example, it is given zoning codes of suburban communities giving freedom for mobile homes in the backyard homes are not permitted. So you have to do your study in each community with your local municipality before eyeing your income.

But the bottom line is that you should be ingenious and creative. If you want to make use of a house hacking strategy and you want to lessen your property expenditure, look out for chances. This is a principle of entrepreneurship, so get excited and hunt for changes in your community.


GETTING A MORTGAGE AND RAISING DOWN PAYMENT FUNDS. A crucial component of house hacking is acquiring a good mortgage. If you are asking what a good mortgage is, then it comprises of the following:

  • The rate of interest is fixed long-term and should be as low as possible
  • Getting a 30-year loan with very low monthly amortization
  • Small Down Payment
  • Staying away from “gotchas” like prepayment penalties or short term balloon payments

You can attain most of these purposes with traditional owner-occupied mortgage products especially in the State of Texas. But of several mortgage options, some US lending programs give you the freedom to purchase the property with a lower down payment. These options are briefly explained below:

  1. Federal Housing Administration Loans. This kind of loan is a federally insured loan program pinpointed to owner-occupant purchasers who possess less cash available, or one with a lower credit score. Its advantage is that it has less restrictive qualifying requirements for borrowers as compared to conventional loans. One can also secure a 3.5% interest rate, for a fixed interest rate of thirty (30) years. FHA is also eligible for multifamily units.


On the other hand, higher fees such as insurance charges are inherent. Sometimes one disadvantage is a slow approval process where main remodels not allowed.  FHA-approved lenders can be seen at most bank departments handling mortgages. It can also be found through mortgage lenders, credit unions, and mortgage brokers.


  1. VETERANS ADMINISTRATION LOANS. This is a federally insured loan program especially destined for the United States Military Veterans. One of the benefits is that it can possess no down payment and it has a fixed rate of interest for thirty (30) years. It also gives reasonable qualification requirements, multiple loans destined for multifamily units.


The downside of VHA is that the approval process and documentation are not super-fast. It also restricts the number of loans based on your “entitlement” ceiling, major fixer-upper components will not qualify. Veteran Administration Loans approved lenders can be witnessed at most bank mortgage departments, credit unions, and mortgage lenders.


  1. CONVENTIONAL CONFORMING LOANS. These are loans that are not supported or guaranteed by the government unlike the first two. These are types of conventional loan that conforms to the underwriting components of mortgage company giants. House hackers take benefit by supplementing great terms, flexible down payments, and of course, low monthly interest rates.


Its advantages are that it has 15 and 30-year fixed interest rates as well as payments. It is also fast approval as compared to FHA and VA loans. Its disadvantage is that you will max out around 4 to 10 approved loans. It is also noted that credit requirements are basically more tedious and rigorous as compared to the first two types. Lenders who make loans can be found at most bank mortgage departments, credit unions, or mortgage lenders.



Utilizing the BRRR (Buy, Rehab, Rent, Refinance, Repeat concept): An intelligent financing technique.

You might wonder that in the financing programs that were discussed in the last article, major fixer-upper properties are not permitted. So, if you are purchasing a standard property that needs to have a cosmetic renovation like carpeting and painting, you will be fine.  So, how will you come up with financing?

Some people will definitely use a strategy more commonly known as the BRRRR technique. It is basically a famous technique among real estate investors that have been there for a long period.

How does it work? We listed the fundamentals:

  1. Purchase a property with the use of short-term funds like a construction loan, money loan, private resource or cash, and even line of credit.
  2. Rehabilitate the property to get it rentable and enticing to viewers.
  3. Rent the property
  4. Season the rental on periods like quarterly or semi-annually
  5. Refinance the property with a long-term mortgage

Ideally, your remodeling chores will enhance the value of the property. This is not automatic, that is why it is best suggested to carefully analyze the market and your purchase amount with the aid of a professional before purchasing it. Here at www.rabykaylee.com, we have professionals that can aid you with this. Now, you can refinance the property to pull out almost all of your money. That is a plus!

You might regard investing no money or minimal amount may just be bogus. But in this scenario, it is legit. And when you incorporate this small amount of case invested with the other advantages of house hacking, like lessening or taking away your housing payments, you can be able to realize why it is considered one of the most effective and comprehensive real estate investment strategies.

Hindrances, challenges, and objections. Here at www.rebykaylee.com, we will share some of the most common objections and our response to them:

We do not want to live together with other tenants”.  It is a known fact that the landlord-tenant relationship has bad connotations. A lot of bad landlords, as well as bad tenants, have their reputations on their belts. For this very same reason, you might be hesitant to live next to your tenants.

But you have to bear in mind, you get to screen the ones that will lease at your units. You cannot and should not discriminate based on color, religion, gender, race, familial status in life, or other legally secured classes. However, you can and you should make use of a thorough screening method to find the most eligible tenants.

Well, we cannot deny the fact that there will be occasional rants, knocks at your door, calls, and texts, for maintenance problems. But you still have a choice, at the end of the day. You may want or not want to do these. Actually, it is nice to know your tenants. You will get to meet interesting people and your life would be richer for that.

“I have no idea how to be a landlord” Each person should first know how to walk before they can run. And house hacking is the most effective way to learn how to be a landlord. Do not worry about making mistakes because anybody is bound to make them. But the plus there is, you are living on-site, and you can make up for your lack of know-how with sincerity, good faith, hustle, and your own hard work.

“There are no good deals in my community”. Some say, “I don’t think I can find an excellent deal”. You know, looking for an excellent deal is one of the most essential and crucial components of the process. But unlike any other problem, it is solvable. Looking for a real estate deal is just like treasure hunting. Initially, you need to know what you are looking for. Next, you need to turn over a lot of stones for a gem. If you are having a time conflict to invest upfront in finding a good deal, house hacking might be the answer.

It is a known fact that different markets have different investment essentials and pricing. You might be able to get the perfect figures in your market, but the idea of house hacking remains stable. You can make use of the rent from your tenants to lessen your housing payment and save an enormous amount of money, or whether you comprehensively live for free or just save a lot of money, the idea will remain to be advantageous.


If you are looking to move to Dallas Texas and need an expert to help you find the right neighborhood, contact us today at ReByKaylee.

If you are looking to move to Dallas Texas and need an expert to help you find the right neighborhood, contact us today at ReByKaylee.

Kaylee McMahon

Apartment investor/ TREC® Brokerage LLC Owner c: 469-990-4627 (text or call) www.rebykaylee.com

kaylee@rebykaylee.com IG: Rebykaylee

By | 2021-02-18T19:58:31+00:00 February 18th, 2021|Uncategorized|Comments Off on Genius House Hacking Concepts

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